Slide 1: Essel Propack Investor Notes Cover Letter
-- -- • essel EXTRAORDINARY PACKAGING 08 November 2019 r·· c~~'.·p·~·~~t~··s~;:~i~·~··o~p~;:t;;·~·;~'i'······················ · · ··· ···r··ih~··Li~ti·;~·i·n~·p·~;:t~~~;~t·····················. ·····································1 ! BSE Limited ! National Stock Exchange of India Ltd : th : 25 Floo
Slide 2: Essel Propack Limited (EPL) Q2FY20 Earnings Presentation
Essel Propack Limited (EPL) Q2FY20 Earnings Presentation
Slide 3: Safe Harbour
Essel Propack Limited Q2FY20 Earnings Presentation Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward-looking statements. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties that could cause actua
Slide 4: EPL 2.0: First Quarter Since Blackstone Investment
EPL 2.0 First Quarter Since Blackstone Investment
Slide 5: EPL 2.0: Executive Summary
Essel Propack Limited Q2FY20 Earnings Presentation EPL 2.0: Executive Summary 1 With Blackstone as the new controlling shareholder, our mission is to deliver: “Capital Efficient, Consistent Earnings Growth” 2 Revamped the Board with fit-for-purpose professionals, strengthened the management team, an
Slide 6: Q2FY20 Consolidated Financial Highlights
Essel Propack Limited Q2FY20 Earnings Presentation Q2FY20 Consolidated Financial Highlights: Reported Y-o-Y Revenue growth of 6.9% and PAT1 growth of 49.1% (INR million) Revenue from Operations EBITDA and EBITDA Margins EBIT and EBIT Margins 7,305 18.2% 20.9% 11.7% 13.0% 6,835 6.9% 1,525 1,247 22.3%
Slide 7: EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth
Essel Propack Limited Q2FY20 Earnings Presentation EPL 2.0 Mission: Capital Efficient, Consistent Earnings Growth Early Results Visible in Q2FY20 (INR million) Q2FY19 Q2FY20 Growth Revenue 7,305 6.9% 6,835 Growth Adjusted EBITDA1 18.4% 1,247 1,476 Adjusted EPS1 2.11 24.3% 1.69 ROCE2 15.5% 16.4% FY19
Slide 8: Revamped the Board with Industry Veterans and Professionals
Essel Propack Limited Q2FY20 Earnings Presentation Revamped the Board with Industry Veterans and Professionals to Ensure Best-in-Class Governance and Shareholder Value Creation Independent Directors Davinder Singh Brar, Uwe Roehrhoff, Sharmila Karve, Board Chairman Chairman, Nomination Chairman, Aud
Slide 9: Strengthened Management Team; Blackstone's Global Advisor Network
Essel Propack Limited Q2FY20 Earnings Presentation Strengthened Management Team; Deep Engagement of Blackstone’s Global Advisor Network New CFO hired with experience across packaging, consumer and pharmaceutical industries Supply Chain Roles Finance Director Finance Director Group CFO Hindustan Unil
Slide 10: Strong Revenue Growth led by Personal Care Segment
Essel Propack Limited Q2FY20 Earnings Presentation Strong Revenue Growth led by Personal Care Segment with Improved Profitability (INR million) Growth (%) QoQ YoY 16.0% Highest revenue in a quarter 6,944 6,937 7,305 6,835 6.9% since inception 6,354 6,298 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 40.
Slide 11: Renewed focus on capital allocation and efficient cash management
Essel Propack Limited Q2FY20 Earnings Presentation Renewed focus on capital allocation and efficient cash management 3,040 Prudent capex spend 2,305 1,987 1,405 536 FY16 FY17 FY18 FY19 H1FY20 Capital Expenditure (INR million) Interim H1 Annual Dividend Dividend Increased dividend payouts1 1.10 1.20
Slide 12: Key Business Highlights - Q2FY20
Essel Propack Limited Q2FY20 Earnings Presentation Key Business Highlights - Q2FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 11
Slide 13: Personal Care has tripled over last eight years
Essel Propack Limited Q2FY20 Earnings Presentation Personal Care has tripled over last eight years and has been the major growth driver for the company Tube Revenue from Personal Care (INR mm) 17% CAGR 10,273 8,254 5,741 2,980 FY11 FY15 FY19 H1FY20 Sub-categories Face Care Hair Care OTC medication P
Slide 14: Personal Care in Q2FY20 contributed to 46% of tube revenue
Essel Propack Limited Q2FY20 Earnings Presentation Personal Care in Q2FY20 contributed to 46% of tube revenue Personal Care contribution to Tube Revenue 460 bps 46% 42% 41% Q2FY18 Q2FY19 Q2FY20 Mix shift towards Personal Care to continue, driven by increasing penetration of laminated tubes in the
Slide 15: Growth in Personal Care Visible Across Regions (1/2)
Essel Propack Limited Q2FY20 Earnings Presentation Growth in Personal Care Visible Across Regions (1/2) (INR million) AMESA EAP 3% CAGR 1,065 26% CAGR 1,001 492 448 882 309 Q2FY18 Q2FY19 Q2FY20 Q2FY18 Q2FY19 Q2FY20 Highlights Highlights Personal Care contribution increased to 51.7% in Q2FY20 Persona
Slide 16: Growth in Personal Care Visible Across Regions (2/2)
Essel Propack Limited Q2FY20 Earnings Presentation Growth in Personal Care Visible Across Regions (2/2) (INR million) Americas Europe 19% CAGR 1,090 37% CAGR 429 896 774 309 228 Q2FY18 Q2FY19 Q2FY20 Q2FY18 Q2FY19 Q2FY20 Highlights Highlights Personal Care contribution increased to 27.2% in Q2FY20 Pe
Slide 17: EPL is driving conversion to laminated tubes in Pharmaceuticals
Essel Propack Limited Q2FY20 Earnings Presentation Case Study EPL is driving conversion to laminated tubes in the Personal Care industry – Pharmaceuticals Conversion of marquee pharma products in India Key Customer Challenges EPL Offered A Better Product Impact 100% aluminum tubes historically Conve
Slide 18: Key Business Highlights - Q2FY20
Essel Propack Limited Q2FY20 Earnings Presentation Key Business Highlights - Q2FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 17
Slide 19: EPL has established global leadership in Oral Care
Essel Propack Limited Q2FY20 Earnings Presentation EPL has established global leadership in Oral Care with the segment demonstrating steady long-term revenue growth Oral Care revenue (INR million) 12% CAGR 13,966 11,764 12,748 9,203 5,823 FY11 FY13 FY15 FY17 FY19 Customers Market Positioning 1. Mark
Slide 20: Key Business Highlights - Q2FY20
Essel Propack Limited Q2FY20 Earnings Presentation Key Business Highlights - Q2FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 19
Slide 21: Strong growth momentum in Europe driven by Personal Care
Essel Propack Limited Q2FY20 Earnings Presentation Strong growth momentum in Europe driven by Personal Care Europe revenue (INR million) Revenue CAGR 2,000 1,740 15% 1,479 1,500 1,323 14% 1,000 500 62% 62% 64% 19% 0 Q2FY18 Q2FY19 Q2FY20 Personal Care Oral Care Others Personal Care as % of tube reven
Slide 22: Leading to strong EBITDA growth and margin improvement
Essel Propack Limited Q2FY20 Earnings Presentation Leading to strong EBITDA growth and margin improvement Europe EBITDA (INR million) 300 13.7% 420 bps 15.0% 9.5% Margin expansion 200 239 10.0% driven by fixed cost leverage; 141 improvement to 100 5.0% continue 0 0.0% Q2FY19 Q2FY20 EBITDA Margin K
Slide 23: Key Business Highlights - Q2FY20
Essel Propack Limited Q2FY20 Earnings Presentation Key Business Highlights - Q2FY20 • Accelerated growth in Personal Care • Continued leadership in Oral Care • Improved Performance in Europe • Industry leadership in eco-friendly solutions 22
Slide 24: Sustainability: An intrinsic value at EPL
Essel Propack Limited Q2FY20 Earnings Presentation Sustainability : An intrinsic value at EPL Committed to sustainability by offering innovative solutions across product categories Platina • Fully-recyclable (Code 2) laminate (Oral Care) Oral Care • Suitable for oral, hair care and food products Rec
Slide 25: EPL 2.0: Executive Summary
Essel Propack Limited Q2FY20 Earnings Presentation EPL 2.0: Executive Summary 1 With Blackstone as the new controlling shareholder, our mission is to deliver: “Capital Efficient, Consistent Earnings Growth” 2 Revamped the Board with fit-for-purpose professionals, strengthened the management team, an
Slide 26: Appendix
Appendix
Slide 27: Adjusted EBITDA grew by 18.4% Y-o-Y & Adjusted PAT grew by 24.3%
Essel Propack Limited Q2FY20 Earnings Presentation Adjusted EBITDA grew by 18.4% Y-o-Y & Adjusted PAT grew by 24.3% Y-o-Y (INR million) Adjustments EBITDA PAT1 Q2FY20 Reported numbers 1,525 796 • TSA1 related expenses +17 +13 • One-time tax amnesty expenses2 +11 +7 • Impact of change in accounting s
Slide 28: Q2FY20 Regional Performance – 1/2
Essel Propack Limited Q2FY20 Earnings Presentation Q2FY20 Regional Performance – 1/2 Revenue Split % across regions EBIT Split % across regions Europe, Europe, 23% 12% AMESA, AMESA, 27% 32% Americas, 25% Americas, 22% EAP, 23% EAP, 36% • The quarterly revenue grew by 6.9% y-o-y (7.7% at constant cur
Slide 29: Q2FY20 Regional Performance – 2/2
Essel Propack Limited Q2FY20 Earnings Presentation Q2FY20 Regional Performance – 2/2 (INR million) YoY | QoQ Revenue EBITDA Margin Growth AMESA1 2,433 4.1% | 8.1% 539 22.2% EAP 1,749 -5.3% | 26.0% 451 25.8% Americas 1,648 14.8% | 20.6% 335 20.3% Europe 1,740 17.7% | 14.7% 239 13.7% (1) EBITDA exclud
Slide 30: Q2FY20 Performance – AMESA and EAP
Essel Propack Limited Q2FY20 Earnings Presentation Q2FY20 Performance – AMESA and EAP (INR million) AMESA Particulars Q2FY20 Q2FY19 % change Revenue 2,433 2,337 4.1% EBITDA1 539 455 18.5% EBITDA % 22.2% 19.5% EBIT1 286 268 6.7% EBIT % 11.8% 11.5% EAP Particulars Q2FY20 Q2FY19 % change Revenue 1,749
Slide 31: Q2FY20 Performance – Americas and Europe
Essel Propack Limited Q2FY20 Earnings Presentation Q2FY20 Performance – Americas and Europe (INR million) Americas Particulars Q2FY20 Q2FY19 % change Revenue 1,648 1,435 14.8% EBITDA 335 260 28.8% EBITDA % 20.3% 18.1% EBIT 245 192 27.4% EBIT % 14.9% 13.4% Europe Particulars Q2FY20 Q2FY19 % change Re
Slide 32: About EPL
About EPL
Slide 33: EPL: Company Overview
Essel Propack Limited Q2FY20 Earnings Presentation EPL: Company Overview Largest laminated Global Leader in Growing Strong tubes Oral Care emergence in relationships with manufacturer Personal Care marquee FMCG customers ~8 bn Tubes #1 Globally 46% contribution 20+ years Best in class Best in class
Slide 34: EPL caters to marquee customers across trillion dollar categories
Essel Propack Limited Q2FY20 Earnings Presentation EPL caters to marquee customers across trillion dollar categories Tube revenue split (Q2FY20) Oral Care, 54% Others, 3% Pharma, 9% Beauty & Cosmetics, 33% Personal Care , 46%
Slide 35: About EPL
Essel Propack Limited Q2FY20 Earnings Presentation About EPL EPL is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 3366 people representing 25 different nationalities, EPL functions through 20 state of the a